News Hub: New Checks and Balances on Chinese Firms

WSJ's Michael Rapoport has the story of new efforts to scrutinize accounting practices in China. Photo: STR/AFP/Getty Images

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GB's ... I ... after another is called into question the accuracy of its financial reports ... I've already obviously accounting firms were supposed to be signing off on them Michael Rapoport is a creepy for Wall Street Journal about this issue joins us now ... on Michael good morning so I'm ... Chinese companies are betting the headlines lately on a short seller saying look these financials are hot they are ... on track ... where does this leave the others being captain for for the double what was happening that was where were seeing a lot of problems arise with Rupert was a bank confirmations ALM that that process ... which water is supposed to foretell the banking verified ... dollars cashback independent Barbara depending on demand across the Cubbies last post about the process in any way ... out of the capos the bank for of ... for verification the numbers to back to the problems for what we as the bank for CapLease the numbers ... to bat Buys rectitude ordered that the Commerce post abnormal what's happening ... is able to take a number of top of the Chinese cases ... be the order didn't accomplish properly for the company's interfere in the process for Book was certainly ... in some cases the relegation to bank officials to sell some kind of ... included with what was coming to to to to deceive us ... really know what legacy rate is is this is the isthe ... cannot Cymbalta cash flow the company is this this is this one was basic things adore the report about ... how much money as the bank ... and ... we've seen interesting Lee and the case of Sino foreign promotion with some ... accusations of impropriety are hundreds of millions of dollars that disappeared or lost internal market value ... Longtop Financial right ... and it seems I'm not in anybody's read anytime in Chinese continue tightening in emerging markets ... um you know there is a different understanding and relationship in these countries ... the rest of the ... business visitors and different due in less developed economies in United States there and they're generally very ... well fall practice is ... not always so well fall and how we get up and running after all but here is their surprise there are practices that have long been in place a place like China which is really only had twenty or thirty years mercantilist closet Apple's economy ... Montserrat is the third of the people I talk to it's it's it's a step in emerging markets prop ... forcing in China we we we saw a few months ago in India with with with a few will be a ... scandal of Saddam's computer services ... off PricewaterhouseCoopers which which is their water ... it wouldn't sanction a union affiliates ... awful for for cannot on not to talk which is probably ... but in fact it that that's that's been the ICC said that it was a problem ... in either went beyond just just a distant shot that was what I was in a few billion dollars in the market ... investors have been pouring money into emerging markets in people forget this festival the weakness in U S signs of strong global growth people just don't buy anything as China or India in its name ... and as you say and maybe they should know that all of their sin or targets early hours but I'm sure they're a lot of investors were suddenly going ... into so much exposure do I have just how bad and certainly probably show the signs that the that that would be more portion of orders in China or or or try to take the extra step of that some things that are actually can deliberately compilation they were Quebec that we can do for the bank official compete in the press ... well that that that that can lead to production ... I and I are Ezrati evidence at this point the Cubbies might be prosecuted overseas and U S or or or whatever for so it's it's it's it's it's a steroid shot to say the the the SEC's don't investigating ... other that on hold reverse merger process the best defensive back or process by which ... Upshot elections Commission that most of us in and out of the Vladivostok Lisa but ... have since had any difficulties but it introduced Exec which ... is accustomed on one huge engine was human spirit to finance a chutney that I think that the will ... was for five years ... that is actually just tissue that could ... have a few years of a second is this year ... that the of the CEO of of Fredy Bush was what was in bed in the US ... on tours of the hedge shears are talking to two ... of Torchwood which are so ... bright yes I have to wait and many more to Amalfi Michael Rapoport great serena Journal more D tells on line thanks much for joining us on that ...